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Trading Symbol: RRO - TSX-V
Shares Outstanding: 73,681,909
HALIFAX, Jan. 10 /CNW/ - Royal Roads Corp. (RRO-TSX-V) ("Royal Roads") is
pleased to announce that its Phase II drilling program on the Daniels Pond
deposit is now complete with 11,490 metres drilled in 58 holes. Assays for the
remaining holes, DN-07-113 to 123 (11 holes totaling 2,247 metres), are
pending and expected to be available by the end of January. The aforementioned
holes were drilled in the stronger mineralized Southwest Lobe of the deposit
and should provide the remaining data required to proceed with compiling a new
National Instrument 43-101 (NI 43-101) compliant resource estimate. The
revised estimate will include resources assigned to the greater confidence
"Indicated" category as well as a new estimate of Inferred resources. Work on
the revised resource estimates has commenced and is being completed by
independent consultants, Mercator Geological Services of Dartmouth, Nova
Scotia under the supervision of Independent Qualified Person, Peter Webster
P.Geo.
With completion of the Phase II program, Royal Roads has completed in
excess of 13,175 metres of drilling in 73 drill holes at Daniels Pond and
together with drilling completed at the Parking Lot prospect (Royal Roads news
release dated November 28, 2007) has drilled in excess of 14,000 m in 77 holes
on its Tulks North property in 2007. Looking forward in 2008, Royal Roads
expects to continue to aggressively explore Daniels Pond, particularly at
depth and along strike, while also broadening its drilling efforts to test
priority targets located elsewhere within its expansive 182 square kilometre
Tulks North property.
Continued Deep Exploration Drilling at Daniels Pond
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As part of the recently completed phase II drill program, a pattern of
three deep drill holes were drilled to test for mineralization below the known
resource in the northeast and southwest, one of which, hole DN-07-92 located
below the Northeast Lobe and 220 metres below surface, returned an
intersection of 2.47 metres averaging 5.27% Zn, 2.41% Pb, 0.22% Cu,
116.8 g/t Ag and 0.43 g/t Au (Royal Roads news release dated October 10,
2007). On the basis of strong mineralization intersected in this hole,
additional drilling has now commenced to test for further mineralization below
the deposit at depths between 350 and 500 metres below surface. The current
program is expected to run throughout the winter drilling season and include a
minimum of 3,000 metres of drilling using one drill rig.
The Daniels Pond deposit is currently estimated to host a NI
43-101-compliant Inferred Resource at a 2% Zn cut-off of 1.69 million tonnes
grading 8.37% zinc, 4.4% lead, 0.57% copper, 196.9 g/t silver and 0.68 g/t
gold (Royal Roads news release dated November 7, 2006). The bulk of these
resources occur within 200 m of surface in two lobes of mineralization, the
weaker mineralized Northeast Lobe and the stronger mineralized Southwest Lobe
respectively. These lobes dip steeply to the northeast and have a combined
strike length of 1,100 metres and potential to expand the deposit both down
dip and along strike of both lobes.
Other Drilling
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Elsewhere on the property, Royal Roads is planning to undertake a
1,500 metre, drilling program to test the Daniels Pond Extension prospect
located 7 kilometres to the northeast along strike of the Daniels Pond
deposit. This program was originally planned for the fall of 2007, but was
postponed as winter conditions allow better access to the target area. Details
of the program were previously announced in a news release dated August 21,
2007. The program is expected to begin in late January and include drilling of
up to 6 holes testing coincident base metal-in-soil and conductive geophysical
anomalies as well as a discrete, 800 metre long, gravity anomaly located less
than 400 metres southwest of the prospect. Previous drilling of this Daniels
Pond Extension prospect by Royal Roads in 2005 returned intersections assaying
up to 0.57% zinc over a core length of 4.5 metre, including 2.68% Zn,
1.30% Pb, 0.06% Cu, 16.8 g/t Ag and 0.08 g/t Au over 0.6 metres. Highlights
from previous drilling also include recognition of laminated, semi-massive to
massive pyritic and base metal bearing massive sulphides over widths up to
0.63 metres (core width). Previous results from Royal Roads drilling of this
prospect were released on May 30, 2005 (news release available on SEDAR
website).
Gravity Surveys
---------------
Further to information released by Royal Roads in a news release dated
June 13, 2007, the company has completed additional gravity surveys on the
Tulks North Property filling in survey coverage between the previous surveys
over the Daniels Pond deposit and Parking Lot prospect and the Daniels
Extension prospect, an area measuring 1.5 kilometres x 3 kilometres. All
survey data has been processed by geophysical consultant, Gerard Lambert
(P.Eng., Quebec) who has identified several discrete gravity anomalies within
the greater survey area. Royal Roads continues to review each of the gravity
anomalies in conjunction with other previously acquired exploration data, and
may undertake drilling of select targets as part of its 2008 exploration plans
for the property. The gravity surveys were completed by Eastern Geophysics
Limited of West Pubnico, Nova Scotia.
Corporate Reorganization
------------------------
Royal Roads also advises that the Board of Directors of each of Royal
Roads and Buchans River Ltd. have asked management to consider whether the
assets and operations of Royal Roads and Buchans River Ltd. can be combined in
such a manner that it would provide enhanced value to the shareholders of both
companies. Management intends to work with its legal, tax and other advisors
to examine the possibilities with a view to possibly making a recommendation
to the independent members of the Boards of Royal Roads and Buchans River
before the end of March 31, 2008. Any possible combination would be subject to
receipt of all necessary regulatory and shareholder approvals. There can be no
assurances that any transaction may arise from these considerations.
Qualified Person
----------------
Paul Moore, M.Sc., P.Geo., (NL), Royal Roads' Vice President of
Exploration, is acting as Qualified Person in compliance with National
Instrument 43-101 with respect to this release and has reviewed the contents
for accuracy.
About Royal Roads
-----------------
Royal Roads is a resource company based in Halifax, Nova Scotia, Canada
and is focused on exploring and developing base metal properties in central
Newfoundland, Canada. Royal Roads and its 26.39% owned associate company,
Buchans River Ltd., together control a total of 33,700 hectares within central
Newfoundland's Victoria Lake and Buchans mining camps, including the historic
Buchans mine (owned by Buchans River) and the Daniels Pond deposit (owned by
Royal Roads). Royal Roads is 44.40% controlled by Acadian Mining Corporation,
a Halifax based resource company developing gold and base metal properties,
including the Scotia Mine (zinc and lead) in Nova Scotia.
Forward Looking Statement
-------------------------
Certain information regarding the Company contained herein may constitute
forward-looking statements within the meaning of applicable securities laws.
Forward-looking statements may include estimates, plans, expectations,
opinions, forecasts, projections, guidance or other statements that are not
statements of fact. Although the Company believes that the expectations
reflected in such forward-looking statements are reasonable, it can give no
assurance that such expectations will prove to have been correct. The Company
cautions that actual performance will be affected by a number of factors, many
of which are beyond the Company's control, and that future events and results
may vary substantially from what the Company currently foresees. The Company's
forward-looking statements are expressly qualified in their entirety by this
cautionary statement.
For additional information on the Company's properties and activities,
please visit our web site at www.royalroadscorp.ca.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
%SEDAR: 00008176E